Pfizer Bets On Medical Cannabis With $6.7 Billion Acquisition

Pfizer is to enter the medical cannabis industry betting on a promising cannabinoid-based bowel disease treatment.

Last week, American multinational pharmaceutical and biotechnology corporation Pfizer signed an agreement with the clinical-stage company Arena Pharmaceuticals for a total equity value of around $6.7 billion.

Under the agreement terms, Pfizer acquires all shares for $100 per share in an all-cash transaction. Moreover, the press release reads that the proposed transaction will be subject to customary closing conditions, including receipt of regulatory approvals and approval by Arena’s stockholders.

Arena Pharmaceuticals is a biotech company with one pipeline dedicated to cannabinoid-type therapeutics. The core of its cannabis operation consists of Olorinab (APD371), an investigational, oral, full agonist of the cannabinoid type 2 receptor (CB2), which aims to treat patients with diseases affecting the stomach and intestine. As Arena’s website states, Olorinab is an investigational drug and is not currently approved for use by any health authority.

Arena’s team is developing this cannabinoid-based drug with an initial focus on visceral pain associated with gastrointestinal disorders. Arena’s website reads that this compound, through its selectivity for CB2 versus CB1, is under investigation for pain relief without psychoactive adverse effects. [Read more at Forbes]